News Details - Legislature Urges Extension of Tax Surcharge on the Wealthy

Stating its belief that “all New Yorkers should share in sacrifice in these difficult fiscal times, especially those most financially able to do so,” the Legislature called for the State Legislature to temporarily extend the State’s tax surcharge on the wealthy to provide additional revenues to the state and mitigate the substantial negative effect of proposed cuts in the Governor’s budget on the most vulnerable New York residents. The final vote was unanimous (with Legislator Nathan Shinagawa excused), after three proposed amendments were debated regarding whether the Legislature should advocate temporary or permanent extension of the surcharge. The surcharge, enacted by the State on a temporary basis in 2009, increased the tax rate on those earning between $300,000 and $500,000 from 6.85 to 7.85%, and those earning more than $500,000 to 8.97%.

The Legislature’s action notes that refusal to extend the surcharge is projected to cost the state $4 billion in lost revenue in the 2012 fiscal year, and that the Governor’s budget disproportionately targets spending reductions for programs that serve the most vulnerable populations. Legislator Frank Proto was one who observed that the State’s budget problems were a long time in the making and won’t be resolved overnight, and that under the circumstances something is needed to help address the immediate problem. Legislator Peter Stein also said he could only support the continued extension as a temporary measure since the State faces “an absolute disaster” at this point, without money to provide basic services.

03-01-2011